The Curious State of Apple Product Pricing

Another good column from Neil Cybart at Above Avalon:

It is very difficult to find a pair of wireless headphones priced lower than AirPods. In the run-up to Apple unveiling AirPods this past September, the wireless headphone market consisted of the following players:

  • Kanoa: $300
  • Bragi Dash: $299
  • Erato Apollo 7: $289
  • Skybuds: $279
  • Earin: $249
  • Motorola VerveOnes+: $249
  • Samsung Gear IconX: $199
  • Bragi Headphone: $149

Given the preceding list, a strong case could have been made for Apple to price its new wireless headphones at $249, or even $299. The fact that Samsung priced its Gear IconX at $199 seemed to suggest a sub-$200 retail price for AirPods was unlikely. Instead, Apple sent shockwaves pulsing through the market by pricing AirPods at only $159. The action instantly removed all available oxygen from the wireless headphone space. The idea of Apple coming out with a new product that would underprice nearly every other competitor was unimaginable ten years ago.

He makes a strong case that Apple Watch is underpriced compared to its competition, too.

AirPods are still showing a delivery estimate of “6 weeks”. Either demand remains unexpectedly strong or production remains unexpectedly difficult (or some combination of both).

Friday, 17 March 2017

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